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Christmas Cheer?

14 December 2006

We can only applaud the hard work of the Haulage Industry Task Group. The RHA, FTA and CBI are rightly proud of their achievements and the arguments which they say have won acknowledgement from government. But it would appear that acknowledgement does not extend to the Treasury. While we're at it, what's with this biodiesel 'green' tax? CM would welcome realistic green taxes - such as slapping a bucket-load of fuel duty on air operators who have run scot-free for decades. But what troubles us  is the Chancellor raising the fuel duty on biodiesel while calling it a green tax. If a signal were needed of the true motives behind the much-vaunted Stern Report then this is it. That report is no more about a cleaner environment than CM is about the railways.

It is hypocrisy at best to claim the moral high ground on green issues and then clout the only initiative we have with taxes. Biodiesel may be a stopgap solution to reducing oil consumption, but it is currently one of the only options we have. Additionally, there was no mention of the long-hinted-at incentive for the early uptake of Euro-5 or other reduced emissions initiatives, which would have made a further contribution to making the country cleaner and greener. Overall it was a disappointing pre-Budget statement. This Chancellor may have worked well for the economy, but he has consistently ignored the needs of the freight industry which supports our economic success. We can't imagine that the £5 tax on airline tickets  will have anything like the impact on the airline business that the hike in diesel will have on our industry.

Of course you must try to pass costs on to customers, and brace yourself for hard negotiation. But we remain concerned that for many smaller road transport firms, this latest governmental 'support' will be the straw that finally breaks their backs. The Chancellor has consistently ignored the needs of road transport industry.


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